Apple iPhone 13 Series Demand May Be Below Expectations

In a nutshell: Lately, we’re used to hearing that consumer electronics demand is far outstripping supply, but a new report claims the iPhone 13 faces a different challenge. Apple has told several component suppliers that demand for its latest phone is declining as the holidays approach.

Back in October Bloomberg reported that Apple has slashed its iPhone 13 production plan to 80 million units, 10 million less than originally planned as Broadcom and Texas Instruments were unable to supply components due to chip shortages.

Publication now reports that Apple had hoped to make up for losses in 2022 when parts supply is expected to improve, but an insider says he has informed suppliers that orders may not materialize.

In announcing Apple’s financial results for the fourth quarter of fiscal year 2021 ending in September, CEO Tim Cook said supply restrictions caused by chip shortages cost the company an estimated $ 6 billion.

News also surfaced last month that Apple was forced to halve its iPad production as components originally intended for tablets were redirected to the iPhone 13 line. Older iPhones also see their components re-prioritized for Apple’s latest phones.

Despite a slowdown in demand, analysts still expect Apple to have a record holiday season thanks to a 6% increase in sales to $ 117.9 billion in the last three months of the year. But due to shortages, pandemic and inflation, we could see consumers refrain from buying an iPhone 13 and instead wait for an iPhone 14 next year. The fact that Apple co-founder Steve Wozniak recently admitted that he believed the iPhone 13 was identical to its predecessors did not help the phones gain attention.

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